Critical Steps to Forecasting Replenishment for Demand PlanningForecasting replenishment correctly and following standardized inventory replenishment processes continues to deliver significant returns to retailers, wholesalers, and manufacturers. For the retailer/ wholesaler/ manufacturer ready to move away from legacy technologies, there are huge opportunities that cost 50-90% less than legacy systems. A forecast accuracy in the 90% range we know delivers a significant shareholder value increase of 15% or more.

Several documented events support these claims (click a link): a retailer achieved a 25% inventory reduction and a 3% same store sales increase in 90 days, the sales and inventory trend continued going forward (press release), Dr. Mentzer’s 3 page story concerning a collection of businesses that delivered an average 15% shareholder value increase via forecast accuracy improvements which directly impacted forecasting replenishment, and The Home Depot Chairman and CEO, Frank Blake, specifically stated in the 2011Q4 earnings briefing that supply chain investments continued to provide significant benefits including increased turns and same store sales.
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